Which of the following is essential to monitoring internal control?

Monitoring internal control is a critical function within any organization, ensuring that processes are effective and risks are managed appropriately. The necessity of establishing a baseline of effective control means that organizations need to know what optimal internal control looks like to assess whether current practices are meeting those standards.

Selecting appropriate benchmarks is also vital, as it allows organizations to compare their internal control processes against established standards or other similar entities. This comparison can help in identifying areas of improvement and ensuring that the internal controls are functioning as intended.

Performing analytical reviews contributes to monitoring by providing insights into trends and anomalies in financial data, which can indicate weaknesses in internal controls or areas that require further investigation.

Collectively, these activities—establishing baselines, selecting benchmarks, and conducting analytical reviews—form a comprehensive approach to monitoring internal controls. Each element reinforces the others, making the whole much more effective than any individual component. This holistic view of monitoring internal controls supports the conclusion that all of the mentioned activities are essential to the process.